Anton Company manufactures wooden magazine stands. An accountant for Anton just completed the variance report for the current month. After printing the report, his computer’s hard drive crashed, effectively destroying most of the actual results for the month. All that the accountant remembers is that actual production was 220 stands and that all materials purchased were used in production. The following information is also available:

Current Month: Budgeted Amounts

Budgeted production: 200 magazine stands

Direct materials: Wood

Usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 square feet per stand

Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.25 per square foot

Direct labor:

Usage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.5 hours per stand

Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10 per hour

Variable overhead (allocated based on direct labor hours):

Rate per labor hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4

Rate per stand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2

Fixed overhead (allocated based on direct labor hours):

Rate per labor hour . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6

Rate per stand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3

Current Month: Variances

Direct materials price variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 33 Unfavorable

Direct materials quantity variance . . . . . . . . . . . . . . . . . . . . . . . . . . . –0–

Direct labor rate variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231 Favorable

Direct labor efficiency variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550 Unfavorable

Overhead volume variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Favorable

Overhead spending variance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Unfavorable

Instructions

Using the budget for the current month and the variance report, construct the items below.

a. What was the actual purchase price per square foot of wood?

b. How many labor hours did it actually take to produce each stand?

c. What was the actual wage rate paid per hour?

d. What was actual total overhead for the month?